Ethereum Hits All-Time Highs; Litecoin Readies the Launchpad

Here’s what’s happening.

Published in

The Capital

4 min readNov 4, 2021

As Bitcoin gears up for another leg higher, what are these two top altcoins up to? In this edition, we analyse Ether/Dollar and Litecoin/Dollar, both of which have clear upside potential even at this stage of the bull market.

Meanwhile, a formal US tapering date is expected to be announced at today’s FOMC meeting. Will this cause a taper tantrum, or is it already priced in?

Let’s dig in.

Bitcoin Eyes FOMC Meeting After Recording Highest Monthly Gain Ever

Bitcoin’s October rally has placed the cryptocurrency on solid footing ahead of a central bank meeting in the US, UK, and Australia, which aims to assess the stickiness of worrying levels of inflation.

Check out the full article here!

Technically speaking

From now on, one of the semi-weekly newsletters will be dedicated towards altcoins (in no specific order). The selection of coins may vary, but this should give a broader understanding of the crypto markets, so stay tuned!

Ethereum hits new highs

ETH/USD has joined the all-time high frenzy in an as yet anticlimactic move above $4,400.

The crypto sliced through its previous high at $4,000 for several days but has now captured the phycological level decisively so far.

When it comes to targets, we can use the normal tools at our disposal — i.e., fib extensions. Provided the breakout doesn’t result in a deviation, then the 1.618 fib extension lands ETH/USD at $6,070. That’s a 33.5% increase from current prices ($4,540).

However, rotating out of ETH/USD into Bitcoin depending on key resistance levels on the ETH/BTC pair could go a long way. The 0.077 Satoshi level is one such level to de-risk into bitcoin or USD. On the flip side, 0.052 would be a level to pick up some eth.

On the dollar pair, ETH/USD 20-daily EMA ($4,150) has provided strong trending support. Lose that, and bullish deviation setups become invalidated, opening the door for a correction to $3,800-$3,900. As prices accelerate forward, sharp and sudden sell-offs to the breakout point should be regarded as red flags indicative of market weakness.

All in all, Ethereum looks good, but there’s clear behaviour that we do not want to see.

Litecoin chops around $200; eyes $307 short term

Litecoin is attempting to find its footing as it chops at the $200 level. In my estimation, such price-action is only delaying the inevitable.

On the plus side, LTC/USD has successfully flipped $188 into support after a stop-hunt deviation sent the coin to re-test the 200-daily EMA. Price action has been choppy and highly favourable for investors that are accumulating the coin below $200.

Immediate daily support rests at $191.50 — the 20-daily EMA. Barring a quick wick, re-testing the S/R pivot ($188) again would be a red flag, suggesting further consolidation within the multi-month pennant before a breakout.

Market indicators are within neutral to bullish territory, signalling that there is ample room for upside. The technical measured target for the pennant breakout would be well over the weekly super-trend resistance at $307 (52.5%), after which one can expect consolidation of sorts until moving averages catch up and RSI indicators cool off.

Overall, Litecoin is bullish and is on the cusp of printing its first bullish ‘thrust’ towards all-time highs. In my estimation, LTC is an undervalued coin that has a lot of catching up to do on both USD and BTC pairs, the latter of which is near all-time lows. The upcoming privacy-focused mimblewimble launch may provide the impetus needed for LTC to take on a narrative of its own, at least partially.

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Catch you later.

p.s. This is my opinion. It is not financial advice.

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